A Comparative Study On Financial Performance,Financial Policy And Financial Strategy Between Guotou Electric Power And Yangtze River Electric Power

China's hydropower development has achieved brilliant results.From the perspective of hydropower consumption,cumulative installed capacity or new installed capacity,China is ranked first in the world and the largest hydropower country in the world.This article selects the two representative of hydropower industry companies to the Yangtze River Electric Power and Guotou Electric Power as the research object,and the international trust&investment systemic financial data of the two industry leaders were analyzed,aimed to find out they are the key of financial factors and laws,and hopes to provide basis for investors,managers,coworkers and using for reference.The thesis is mainly divided into eight parts.The first part introduces the background and significance of the research.The second part introduces the current situation,competition situation and future growth trend of the global and domestic hydropower industry.The third part mainly introduces the historical evolution,basic situation and main financial data of Yangtze River Electric Power and Guotou Electric Power;the fourth part mainly introduces the Guotou Electric Power and Yangtze River Electric Power in 2013.The structure,comparison and trend analysis of the financial statements from year to 2017;The fifth part mainly calculates and analyses the financial indicators such as profitability,asset utilization efficiency,liquidity,debt ratio,solvency and cash creation ability of the two companies;The sixth part mainly calculates and analyses the two companies from five aspects:profit-making mode,cash-generating mode,wind-control mode,growth mode and value-creating mode.The seventh part mainly analyses and evaluates the financial policies from four aspects:liabilities,dividend distribution,working capital management and investment;the eighth part is the summary of the report,which summarizes the main analysis conclusions and puts forward suggestions for improvement.Through comparative analysis,the following conclusions are drawn:Yangtze River Electric Power maintains the trend of low growth rate,and its profitability is good;Guotou Electric Power has high potential growth in the future.Financial policy Suggestions for the two companies are as follows:Yangtze River Electric Power should maintain OPM strategy,no capital and no interest operation strategy,improve the current level of cash creation;Guotou Electric Power should improve working capital management performance,reduce WCR,build competitive advantage,strengthen OPM strategy,appropriately increase dividend ratio,and improve asset operation efficiency.The thesis deepens the author's understanding of the development status and financial strategy of the hydropower industry.However,due to information disclosure and the limitation of the author's research ability,the research on the development of the hydropower industry,Yangtze River Electric Power and Guotou Electric Power power is not in-depth,which is the deficiency and regret of this paper.